Recent studies by Oxford University and Deloitte (2015) suggest that about
96% of what accounting firms currently do will – in the not-too-distant future – become automated.
96%!
Surely that means the accountant is soon to be redundant.
Why is that?
In recent years advances in technology are automating much of the data processing.
Your bank
transactions (income and expenses) can now be automatically entered into your financial records with greater accuracy. Invoices can now be scanned (or photographed with your smartphone) and put in the right place.
Not only does this save you a significant amount of time. It’s accurate.
Every quarter you can file your VAT returns at the touch of a button.
At the end of the year, one click and your end of year financial statements are almost done.
So do you really need an accountant anymore?
What does this really mean for you?
The technology is called cloud accounting
It is a much better way to control your business finances. It gives you 24/7 access to up-to-date financial information and reports and it saves you a very significant amount of time.
But will it really make the accountant redundant?
Probably not.
Certainly, a cloud accounting system will make your life much easier.
It also makes the accountant's life much easier too. And that means you can expect slightly reduced accountancy fees when you operate your business on a cloud accounting system.
What it really means is accountants need to change.
They will no longer be paid for just adding up the numbers. Technology will do that. Instead, they need to spend more time, using their
skills with numbers, working closely with businesses and helping them to interpret and improve
their numbers.
Some accountants will make that change. Some won’t. Either way, it’s a good thing for small business owners.
Our recommended cloud accounting software is Xero. Surely 800,000 users worldwide can’t be wrong.